Markets Analysis

Fundamental Analysis

• AI boom pioneer NVIDIA’s results far exceed market expectations
• U.S. Stock Indexes Surge, While U.S. PMI Indicates Economic Contraction Zone
• Gold surges as speculation of additional U.S. interest rate hikes recede

XAUUSD Technical Analysis

Analysis of Gold’s daily chart shows that the U.S. PMI reading has entered the economic contraction zone, which has reduced speculation of additional interest rate hikes. The price is currently above the 10-day moving average and approaching USD 1,920. Going forward, the price is expected to hover around USD 1926.

Market volatility could increase, especially with Chairman Powell scheduled to speak at Jackson Hole in the US tomorrow. Therefore, it is uncertain whether Gold’s rally will continue.

Day Trading Strategy (Hourly)

Analyzing the hourly chart of Gold, we see that the price has been rising sharply immediately after the release of the U.S. PMI.
The 240 moving average is acting as a clear resistance line, while the +1σ line of the Bollinger Band is acting as a support line.
Market sentiment suggests that sell positions are increasing, which could trigger a short-term rally in the market for stop-losses.

Today’s day-trade policy is to buy on a short-term push. The entry price is set at USD 1916.25 and the settlement price at USD 1926. The stop loss is set at USD 1910, and be aware of a loss when the price breaks below the pivot point.

Support and Resistance Lines

The resistance line to be considered in the future is as follows

1926 USD – Major resistance level
1916 USD – Major support zone
1911 USD – Today’s pivot point

Market Sentiment

XAUUSD　Sell: 75% Buy: 25%

Today’s Important Economic Indicators

*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.